,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fghg ,,in ,,the ,,house ,,of ,,representatives ,may #h1 #bjbj,ms4 ,snchez introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to provide a payroll credit for certain pandemic-related employee benefit expenses paid by employers4 #a4 ,short title ,this ,act may be cited as the ,providing ,essentials for ,frontline ,workers ,act4 #b4 ,payroll credit for certain pandemic-related employee benefit expenses paid by employers 7a7 ,in general ,in the case of an employer1 there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to the applicable percentage of the qualified pandemic-related employee benefit expenses paid by such employer with respect to such calendar quarter4 7b7 ,limitations and refundability 7#a7 ,dollar limitation per employee ,the qualified pandemic-related employee benefit expenses which may be taken into account under subsection 7a7 with respect to any employee for any calendar quarter shall not exceed #e1jjj4 7#b7 ,credit limited to certain employment taxes ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes for such calendar quarter 7reduced by any credits allowed under subsections 7e7 and 7f7 of section #caaa of such ,code1 sections #gjja and #gjjc of the ,families ,first ,coronavirus ,response ,act1 and section #bcja of the ,,cares ,act1 for such quarter7 on the wages paid with respect to the employment of all the employees of the employer for such calendar quarter4 7#c7 ,refundability of excess credit 7,a7 ,in general ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#b7 for any calendar quarter1 such excess shall be treated as an overpayment that shall be refunded under sections #fdjb7;a7 and #fdac7;b7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 any amounts due to an employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section4 7c7 ,qualified pandemic-,related employee benefit expenses ,for purposes of this section1 the term qualified pandemic-related employee benefit expenses means any amount paid to or for the benefit of an employee in the employment of the employer if-- 7#a7 such amount is excludible from the gross income of the employee under section #aci of the ,internal ,revenue ,code of #aihf by reason of being a qualified disaster relief payment described in subsection 7b77#a7 of such section with respect to a qualified disaster described in subsection 7c77#b7 of such section which was declared by reason of ,,covid-#ai1 and 7#b7 the employer elects 7at such time and in such manner as the ,secretary may provide7 to treat such amount as a qualified pandemic-related employee benefit expense4 7d7 ,applicable percentage ,for purposes of this section-- 7#a7 ,in general ,the term applicable percentage means-- 7,a7 #ej percent1 in the case of qualified pandemic-related employee benefit expenses paid with respect to an essential employee1 and 7,b7 #cj percent1 in any other case4 7#b7 ,essential employee ,the term essential employee means1 with respect to any employer for any calendar quarter1 any employee of such employer if a substantial portion of the services performed by such employee for such employer during such calendar quarter are essential work4 7#c7 ,essential work ,not later than #cj days after the date of the enactment of this ,act1 the ,director of the ,cybersecurity and ,infrastructure ,security ,agency shall issue a definition of essential work for the purposes of this section4 ,in defining the term essential work1 the ,cybersecurity and ,infrastructure ,security ,agency shall take into consideration its ,april #agth #8#8,advisory ,memorandum on ,identification of ,essential ,critical ,infrastructure ,workers ,during ,covid-#ai ,response'' and shall solicit public input4 7e7 ,special rules2 other definitions 7#a7 ,application of certain non-discrimination rules ,no credit shall be allowed under this section to any employer for any calendar quarter if qualified pandemic-related employee benefit expenses are provided by such employer to employees for such calendar quarter in a manner which discriminates in favor of highly compensated individuals 7within the meaning of section #abe7 as to eligibility for1 or the amount of1 such benefit expenses4 ,an employer may elect with respect to any calendar quarter to apply this paragraph separately with respect to essential employees and with respect to all other employees4 7#b7 ,denial of double benefit ,for purposes of chapter #a of such ,code1 no deduction or credit 7other than the credit allowed under this section7 shall be allowed for so much of qualified pandemic-related employee benefit expenses as is equal to the credit allowed under this section4 7#c7 ,third party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b7 of such ,code4 7#d7 ,applicable employment taxes ,for purposes of this section1 the term applicable employment taxes means the following3 7,a7 ,the taxes imposed under section #caaa7;a7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,so much of the taxes imposed under section #cbba7;a7 of such ,code as are attributable to the rate in effect under section #caaa7;a7 of such ,code4 7#e7 ,secretary ,for purposes of this section1 the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7#f7 ,certain terms 7,a7 ,in general ,any term used in this section which is also used in chapter #ba or #bb of such ,code shall have the same meaning as when used in such chapter 7as the case may be74 7,b7 ,certain provisions not taken into account except for purposes of limiting credit to employment taxes ,for purposes of subparagraph 7,a7 7other than with respect to subsection 7b77#b771 section #caba7;b7 of such ,code shall be applied without regard to paragraphs 7#a71 7#e71 7#f71 7#g71 7#h71 7#aj71 7#ac71 7#ah71 7#ai71 and 7#bb7 thereof 7except with respect to services performed in a penal institution by an inmate thereof7 and section #cbca7;e77#a7 shall be applied without regard to the sentence that begins ,such term does not include remuneration4 7f7 ,certain governmental employers 7#a7 ,in general ,the credit under this section shall not be allowed to the ,federal ,government or any agency or instrumentality thereof4 7#b7 ,exception ,paragraph 7#a7 shall not apply to any organization described in section #eja7;c77#a7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code4 7g7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef of such ,code for any failure to make a deposit of applicable employment taxes if the ,secretary determines that such failure was due to the anticipation of the credit allowed under this section4 7h7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section1 including regulations or other guidance-- 7#a7 to allow the advance payment of the credit determined under subsection 7a71 subject to the limitations provided in this section1 based on such information as the ,secretary shall require1 7#b7 to provide for the reconciliation of such advance payment with the amount of the credit at the time of filing the return of tax for the applicable quarter or taxable year1 7#c7 for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection 7a71 and 7#d7 with respect to the application of the credit to third party payors 7including professional employer organizations1 certified professional employer organizations1 or agents under section #cejd of such ,code71 including to allow such payors to submit documentation necessary to substantiate eligibility for1 and the amount of1 the credit allowed under this section4 7i7 ,application of section ,this section shall apply only to qualified pandemic-related employee benefit expenses paid after ,march #ab1 #bjbj1 and before ,january #a1 #bjba4 7j7 ,transfers to certain trust funds ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 and the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of this section 7without regard to this subsection74 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,trust ,fund or ,account had this section not been enacted4